Japanese imaging and electronics majors Indian subsidiary Ricoh India has filed for insolvency proceedings as it is unable to meet its liabilities.
The company has filed an application under Section 10 of the IBC before the National Company Law Tribunal, it said.
“The company has come to a position where it is unable to meet its liabilities and this course of action has been decided in the best interest of the company, its customers, employees and minority shareholders and all other stakeholders,” the company said in a BSE filing.
Ricoh India’s board had on January 25, 2018 resolved to inter alia file an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) and relevant Rules and Regulations thereunder to initiate Corporate Insolvency Resolution Process.
The new IBC has provided a resolution framework that will help corporates clean up their balance sheets and reduce debts. IBC, which came into force in December, provides for market determined resolution in a time bound manner.
In July 2016, indicating a possible accounting fraud, Ricoh India admitted that its accounts appear to be have been “falsified” as it estimated to have incurred a loss of Rs 1,123 crore for the fiscal ended March 2016.
This is published unedited from the PTI feed.